The Evaluation of Dates Supply Chain Performance in the Sultanate of - - PowerPoint PPT Presentation

The Evaluation of Dates Supply Chain Performance in the Sultanate of Oman from the Farm Level, Through Processing to the Export Markets By:

• Dr. Msafiri Daudi Mbaga

NRE

Dates Workshop for Farmers and stakeholders. By: Mbaga

INTRODUCTION

As resented by many of the very fine speakers yesterday e.g. Dr. Rashid and Dr. Robert Hamwey (just to mention a few) Oman is registering increase in Date production This is because of government efforts in many aspects to increase production through:

Disease + Pest control Plant breeding + assistance to farmers

As a result we have

50% of agricultural area under dates 80% Fruit Crops 8 Million date palms country wide Production according to FAOSTAT (Accessed on Sunday March 18, 2018

• 2015--- 345 thousand tons
• 2016--- 349 thousand tons (see next slide)

Promote dates and you are touching the lives of almost all Omani

Dates Supply Chain Performance HM Proposal By: Mbaga

Current situation

Current Situation

Oman is ranked 9th in the world in dates production, in 2016 produced 4% of world production Main Countries Producing Dates in 1,000 tons

Dates Supply Chain Performance HM Proposal By: Mbaga

Production Year 2010 2011 2012 2013 2014 2015 2016 World 7,526 7,263 7,430 7,517 7,600 8,139 8,460 Egypt 135 1,374 1,400 1,328 1,465 1,685 1,695 IRAN 101 1,030 1,070 1,014 1,033 1,050 1,066 Algeria 645 725 789 848 934 990 1,030 Saudia 992 1,008 1,031 1,095 760 892 965 Iraq 568 619 655 676 662 602 615 UAE 825 239 222 238 405 588 672 Pakistan 524 557 525 527 537 468 495 Sudan 434 438 439 439 439 Oman 276 268 281 308 317 345 349 Tunisia 174 190 193 195 199 223 241

Current Situation As we have observed production side ok., BUT export side not okay  Oman exports on average only a small (2.6% on average) of what is produced

• In 2011, Oman exported 7,171 metric tons (2.6

% of the production at US$ 1256).

• In 2012, Oman exported 5,815 metric tons (2.1

% of the production at US$1322).

• In 2013, Oman exported 8,992 metric tons

(2.92% of the production at US$1200).

• This has been the practice for many years now

Oman dates fetch lower price in the international markets Therefore Oman is not fully benefitting from dates

Dates Supply Chain Performance HM Proposal By: Mbaga

Current Situation Our dates packages are not consumer friendly and convenient, compared to our major competitors Ours relatively big packages 500 grams and above

Dates Supply Chain Performance HM Proposal By: Mbaga

Expected Outcome Current situation Our competitors dates are packed in attractive packages that are consumer friendly and convenient. Available in 25, 50, 100, 200, 250gms etc.

Dates Supply Chain Performance HM Proposal By: Mbaga

Expected Outcome

Current situation Currently Oman is lagging behind our neighbors UAE and Saudi Arabia with comparable environments—See exports

Dates Supply Chain Performance HM Proposal By: Mbaga

Major Date Exporting and Importing Countries in 2010. Rank Exporters Importer Country Quantity (metric tons) Value (1000 US$) Rank Country Quantity (metric tons) Value (1000 US$) 1 UAE 237,898 22,306 1 UAE 227,726 25,613 2 Pakistan 121,681 48,690 2 India 193,467 95,042 3 Iraq 120,123 35,913 3 Morocco 51,449 77,894 4 Iran 106,760 134,001 4 France 28,171 72,011 5 Tunisia 84,282 200,091 5 Yemen 23,935 11,167 6 Saudi Arabia 73,362 78,126 6 Russian 20,814 29,166 7 Egypt 19,562 18,529 7 Malaysia 17,980 36,120 8 Israel 12,676 63,381 8 Syria 17,343 7,947 9 France 11,514 32,112 9 Indonesia 16,986 18,097 10 Algeria 10,393 16,930 10 Turkey 13,158 13,127 Source: FAOST (2012)

Current Situation

As we saw Oman is not among the leading date exporting countries While our neighbors UAE and Saudi Arabia are in the list of top ten date exporting countries The low level of exports by Oman is attributed to among other things:

(1) Poo handling of dates, (2) Poor quality dates, (3) The lack of clear export marketing strategy and, (4) The lack of a well-coordinated Supply Chain

Dates Supply Chain Performance HM Proposal By: Mbaga

Expected Outcome

The lack of a well-coordinated SS chain has been a serious problem in the Oman date industry For example, half of the dates produced in Oman are being utilized for animal feed or considered surplus and wasted This indicates that date farmers are producing dates without knowing what consumers in the export market want.

Dates Supply Chain Performance HM Proposal By: Mbaga

Expected Outcome

Dates Supply Chain Performance HM Proposal By: Mbaga

Farmers at Farm Level

Processors Consumers at the Export Markets

A well Coordinated Supply chain make it possible for:  Market  Price  Commodity quality information To flow from consumers to processors and to farmers and vice-versa in a timely manner making the supply chain efficient

A well Coordinated Supply chain

A well coordinated supply chain will have 3 aspects:

Farm level Procurement and processing Consumers at the export market

Farm Level

How technically efficient are date farmers in Oman Do they know what export market consumers want?

Dates Supply Chain Performance HM Proposal By: Mbaga

Procurement and processing

Is our procurement system competitive? Are our processing factories and the technology used up-to-date?

Consumers at the export market

Are consumers in the export market know Omani dates? Do we know their WTP for Omani dates? Which markets Omani should target?

Dates Supply Chain Performance HM Proposal By: Mbaga

Preliminary Results Farm level efficiency

Dates Supply Chain Performance HM Proposal By: Mbaga

Table 5: Frequency Distributions of Technical Efficiency Estimates

Efficiency Index (%) Study Sample Number of Farms Percentage Less than 40 80 22.2 Between 40–60 109 30.3 Between 60–80 62 17.2 Between 80–100 109 30.3 Mean Efficiency 0.61 Median 0.59 Maximum 0.93 Minimum 0.18 Standard deviation 0.23 Sample size 360 100

Data Collection

Data for the first objective will be from a random sample of 1,000 date farmers to be drawn based on the proportion of productive date palm trees in Oman by region as indicated in the Table below

Dates Supply Chain Performance HM Proposal By: Mbaga

The Proportion of Productive Date Palm Trees in Oman by Region Region Number of trees percentage Sample size (dates farmers to be interviewed) (Adds to 1,000 farmers) Muscat 5.22 52 Al-Batinah 43.43 434 Musandam 2.22 22 Dhahirah 8.49 85 Dhakhilyah 14.68 147 Sharqiyah 21.54 215 Dhofar 0.33 3 Buraimi 4.09 41 Source: Agriculture Census (2004/2005), Ministry of Agriculture.

The End THANK YOU VERY MUCH FOR LISTENING QUESTIONS ON THIS ARE WELCOME

Dates Supply Chain Performance HM Proposal By: Mbaga